Symphonie Trader System

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Evaluator

Symphonie Trader System

Post by Evaluator »

(This is a constantly updated document that will contain additions and modifications to strategy)

Hello,

I have been testing many indicators and programs to determine which combinations will work the best and most importantly which combinations are the most reliable especially in a whipsaw market like we are having today.

From all my studies and research I would like to put forth the following program for your evaluation and feedback. I call this program the

Symphonie Trader System

Named for the combination of indicators used to determine tops and bottoms for placing entry orders and exit strategy to maximize profit. These four forces at work in the marketplace are; Trend, Emotion, Sentiment, and Extreme and each one reinforces the other. The Symphonie Trader System works together like the components of a Symphonie. Alone each instrument has a weak sound, but; when put together the complete symphonie makes beautiful music rich in sound and texture

The four Indicators are:

Symphonie Extreme Indicator **
Symphonie Emotion Indicator
Symphonie Sentiment Indicator *
Symphonie Trendline Indicator

(* - this one is prone to repaint but not often ** - this one does repaint as it is just a signaler)

Basically, you are following the color changes i n the four indicators and ONLY placing orders (SELL or BUY) when all these indicators all line up pointing in one direction.

Placing an order without confirmation of the 4 signals together will not work as well as waiting for all 4 indicators to tell you when to take action.

Remember confliction in the marketplace is common and will cause you to buy when you should be selling and the reverse. This system seeks to calm the market movement by making showing signals as to the true direction of the market. I attach a screen shot with 3 situations to help you better understand.

As you can see we have the 4 indicators loaded into 3 divided windows.

Symphonie Trendline Indicator - A
Symphonie Emotion Indicator - B
Symphonie Sentiment Indicator - C
Symphonie Trendline Indicator - D

Also I have attached a basic Symphonie System Trade Cycle diagram that show how the theory for Symphonie was developed. Again, Symphonie was not designed to get the tops or bottoms; Symphonie looks to catch the main body of the price action movement.


Money Management Strategy Rules and Guidelines

Proper Money Management skills are essential to becoming good and successful currency trader. Money management is by far the most important skill to master if you want to become successful at trading FOREX. Money management is simply a system you incorporate that will effectively preserve capital while you increase your profits. In other words a good system will help keep you from losing all of your money and help you make money.

Account Ratio System (ARS) and Order Sizing

It is important to maintain a proper account ratio system (ARS) based on the size of your total account balance. This is to ensure that your account does not get overextended and one suffers significant account losses or even a margin call on account causing one to lose all tradable capital in account. To properly do this one need to establish a ratio system based on the 10-1 ratio rule.

ARS basically states that for every 1000 in an account will be equal to one trade lot allowance of 0.10 lot. Therefore the maximum total trades for a 1000 account would be 0.10 lot(s). Based on this system you would maintain the following ratios.

ARS Ratio System
1000 equals 0.10 lot(s)
2000 equals 0.20 lot(s)
3000 equals 0.30 lot(s)
4000 equals 0.40 lot(s)
5000 equals 0.50 lot(s)
6000 equals 0.60 lot(s)
7000 equals 0.70 lot(s)
8000 equals 0.80 lot(s)
9000 equals 0.90 lot(s)
10000 equals 1.00 lot(s)
etc….

However, this does not mean that one is only allowed to trade one order at a time. This system simply stated that the MAXIUMUM open orders do not exceed the ARS system ratios allowance. So, if one had 5k in account the maximum number of mini lots cannot exceed the 0.50 ARS total. Orders could be organized in any combination desired.

EXAMPLE
5K equals ARS of 0.50 in total open orders
(any combination)
(5) 0.10 lots....
(3) 0.10 lots and (1) 0.20 lot….
(2)0.20 lots and (1) 0.10 lot….
(1)0.20 lot and (1) 0.30 lot….
(1)0.50 lot

Entry Points Strategy

The entry and exit strategy is simple. For placing an order one would wait until you have an extreme spike and the other 3 indicators show the same colour in the direction of the extreme spike.

Order Account Balance Protection

For this system, I recommend practicing a very conservative order protection loss system. Once an order is executed, immediately assign the order a 50pip stoploss. If the market turns against you, you will only loose a small amount versus if there is no stoploss and it the market move is heavily against you if can be very costly with no stoploss.

The key is to protect your orders placed as much as possible in effort to minimize losses and maximize gains. Therefore, once the pip count exceeds 30pips positive (market moves 30pips in your favor), move the stoploss to 3pips in front of the order to protect from having any loss on the trade. This will ensure you have atleast a 3 pip profit if there is a sudden change in market conditions.

Yes, in whipsaw action one may get stopped out more often but in those cases it usually means the market is not ready to move in the direction of your order and you can wait on new pricing action that normally means a second entry order that is at a better price than the first because the market was simply not ready.

** - In higher timeframes 15 min it is recommended a 75 pip Stoploss, in 1 hour and above a minimum 100 pip stoploss is recommended. This is only a guideline. Please use Stoploss at levels that you feel most comfortable.

Exit Strategy

The system exit strategy is simple but here are three possible degrees of exit based on ones level of conservativeness or aggressiveness.

Exit Strategy One. (most conservative)

When the Cycle indicator shows an extreme spike (spike with colour) exit the trade at the close of that candlestick. This strategy makes sure that you get all the profit from a trade as the extreme points are reached in a movement. The downside to this strategy is you are exiting an order based on just one of the indicators which is the one that is prone to repaint. If the price action movement is stronger that the cycle extreme shows one would be exiting potentially at the first beginnings of a strong movement and will miss out of the entire movement.

Exit Strategy Two. (Moderate Aggressive)
When the Cycle indicator shows an extreme spike (spike with colour) exit one half of the trade at the close of that candlestick. This strategy makes sure that you get half of the profit from a trade as the extreme points are reached in a movement. The second half of the order would continue to run until the trendline changes colour. Once the trendline changed colour one would exit at the close of that candlestick. With this strategy half of your order has the potential to gain further if the price action movement is stronger than the extreme point indicated and you could reap the extra movement pips. The downside is that if the extreme is on target and rebounds could hit your 3 pip positive stoploss and loose half your profit.

Exit Strategy Three. (most aggressive) ‘’the Gambler’’
When the Cycle indicator shows an extreme spike (spike with colour) one would not exit the order and look to a second indicator (trendline) for the exit signal. Once the trendline colour changes, one would immediately exit the order at the close of that candlestick. With this strategy you have the potential for further gains if the price action movement is stronger than the extreme point indicated and you could reap all extra movement pips with a full order. The downside is that if the extreme is on target and rebounds the price action could hit your 3 pip positive stoploss and one would lose your potential profit.

Exit Strategy Four ''Signal to Signal'' Strategy
Add on strategy for possible exit positions. See post #2885

SPECIAL EXCEPTION to Exit Strategy This exception applies to all Exit Strategies and supersedes them. When a trade produces an Extreme Spikes before reaching 30 pips....,EXIT THE TRADE IMMEDIATELY.

--------UPDATE Account Stats Section---------




--------UPDATE Symphonie Addon Section---------



[img]
Symphonie%20Screenshot%20Basic%20Setup%20Explaination.jpg
[/img]
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Last edited by Evaluator on Wed Feb 08, 2012 7:24 am, edited 2 times in total.
Evaluator

Re: Symphonie Trader System

Post by Evaluator »

Here is a Stat report from a small account I started in September 19 2011 with $3000.00. I stopped the account at the end of 5 weeks because the returns were getting too large.

Trading only EURUSD 5 min timeframe.

I also include on this post the indikators in *.mq4 form.
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Last edited by Evaluator on Fri Dec 09, 2011 6:15 pm, edited 3 times in total.
Evaluator

Re: Symphonie Trader System

Post by Evaluator »

Because the first test account became so large so fast. I started another one that began on 28 Okt 2011 with $3000.00. (mainly because people doubted the results)

Today is Friday and I am posting my weekly Account Statistics Report on the Thread Account.
I am only trade EURUSD only in 15 min timeframe and only during EURO and beginning US market times. No more 24 hr trading for me. Getting too old to do that.#

P.S. I am pretty sure you can call the past 4 weeks of market actions MOST UNUSUAL. Due to the extreme risk events with Greece imploding and all the central back interventions, I have never seen this much market manipulations by so many central banks on a global scale in all my 7 years of trading experience.
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Last edited by Evaluator on Mon Dec 12, 2011 8:35 am, edited 3 times in total.
Evaluator

Re: Symphonie Trader System

Post by Evaluator »

Here is the basics on how it works with a screenshot.

Signals 1,2,3,4 align that create a Symphonie Signal to BUY. The 4 signal alginment tell you the price action will increase so at close of the signal candlestick you intiate the order and just let it ride the price action up. Then at the Extreme Spike you have a choice of which Exit Strategy from Post#1 you wish to choose for your take profit.
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Last edited by Evaluator on Fri Dec 09, 2011 11:48 am, edited 1 time in total.
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lhDT
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Location: Brussels/Belgium

Re: Symphonie Trader System

Post by lhDT »

I presume all settings for the 4 indicators are the default ones ?
Evaluator

Re: Symphonie Trader System

Post by Evaluator »

lhDT wrote:I presume all settings for the 4 indicators are the default ones ?
Yes. I use the default setting from the indikators I have attached to this thread because I have customized the indikators to what I feel are the optimal settings.
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DING
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Re: Symphonie Trader System

Post by DING »

Have the indicator source mql ?
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gaheitman
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Posts: 655
Joined: Tue Nov 15, 2011 10:55 pm
Location: Richmond, VA, US

Re: Symphonie Trader System

Post by gaheitman »

Looks like we can do some catch up reading at FF. http://www.forexfactory.com/showthread.php?t=315572
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lhDT
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Location: Brussels/Belgium

Re: Symphonie Trader System

Post by lhDT »

Yes, that's the FF thread but ... 233 pages !
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gaheitman
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Posts: 655
Joined: Tue Nov 15, 2011 10:55 pm
Location: Richmond, VA, US

Re: Symphonie Trader System

Post by gaheitman »

lhDT wrote:Yes, that's the FF thread but ... 233 pages !
I generally jump to the end to see how much it's changed. Usually the charts look nothing like the first page. That's generally not a good sign. :lol:
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